EU Taxonomy-aligned Activities
Compliance with criteria (TSC), do not harm objectives (DNSH) and minimum safeguards
After identifying a company’s business activities, each of these activities must go through a multistage process to find out if they are considered taxonomy-eligible as well as taxonomy-aligned.
To consider an economic activity not only eligible but also aligned, a company must confirm:
- That it complies with the Technical Screening Criteria (TSC). This means an economic activity must make a significant contribution to at least one of the six environmental objectives,
- Do no significant harm (DNSH) to any of the remaining environmental objectives
- And meet the minimum safeguards based on certain global human rights standards and frameworks.
The fourth step is the implementation of disclosure obligations and reporting.
